Course: brand and product management
American International University – Bangladesh (AIUB)
Khan Samara Salsabeel #07-09162-2
Mr. Mahbub Hossain
Brand and Product Management, sec-A
Subject: STARBUCKS CORPORATION: Managing high growth brand.
We are grateful to you for giving us the chance to work on this case study.
We would also like to express gratitude to you for your gracious cooperation and valuable guidance for preparing the report.
Khan Samara Salsabeel (07-09162-2)
Sadia Rezwana (07-09013-2)
Kazi Masum (08-09933-1)
Mohammad Abdul Kader (08-11783-2)
In 1971, Seattle entrepreneurs Jerry Baldwin, Gordon Bowker and Zev Siegl first opened Starbucks in Pike Place Market.
At that time, Country’s major coffee brands were engaged in price war, therefore they were forced to use cheaper beans in their blends to reduce costs. As a result there was a decline in coffee consumption.
To harness the potential of the gourmet coffee trend in the Seattle area, the founders of Starbucks experimented with the new concept of a store dedicated to selling only the finest coffee beans and coffee brewing machines. This emphasis on quality whole-bean coffee retail was fairly unique.
Starbucks placed quality as its top priority. The Starbucks management dedicated a great deal of their time and financial resources to establishing strong relationships with coffee growers from around the world.
In 1982, Howard Schultz, current CEO of Starbucks recognized that the conservative business plans of early Starbucks management hindered the company from reaching other potential coffee lovers. Hence he transformed Starbucks from a coffee retailer into a café business. He had a vision of expanding the scope and reach of the Starbucks brand.
In addition to selling only ‘best of class’ coffee, Starbucks worked to fill its stores with only the highest quality of everything, from coffee making equipment to the fixtures and furnishings to the music and artwork. Each Starbucks store is carefully designed to enhance the quality of everything the customer see, touch, hear, smell or taste. The stores are designed in such a manner that it gives a warm, inviting environment essential for giving Starbucks a pleasurable coffee centered experience.
The keys for success for Starbucks in building the brand are:
1. Starbucks was the first to introduce Coffee house with premium coffee to American market. 2. Consistent premium coffee.
3. It placed quality as its top priority.
4. Starbucks established strong relationships with coffee growers from around the world. 5. Formation of dynamic management team with highly innovative and creative employees. 6. Profitable partnerships and joint ventures with some of the nation’s strongest corporations such as Host Marriott, United Airlines, Pepsi Co, Dryers and others.
Brand values of Starbucks:
1. Top priority is the quality of its products
2. Premium coffee experience
3. value simplicity over technology
4. Investing in innovation
5. Employees as partners and viewed as the most important assets of the corporation.
The sources of equity of Starbucks are Brand awareness and brand image. Brand awareness and image are collectively known as brand knowledge.
Brand awareness has been established through word-of mouth, partnership and selective and fruitful location of Starbucks outlets.
Brand image is established through:
1. premium coffee beans
2. brewing techniques...